Lies about the bailout
Politicians keep lying about the bailout:
| Lie | Truth |
| It won’t cost more than $700 billion. | When have huge government programs ever cost as much as promised? NEVER! Paulson, et al, have hardly a clue what their bailout will cost, partly because… |
| The government will pay a fair price for troubled debts. | Nobody knows how to price these troubled debts. That means means that “we the people” will get soaked. |
| The government could make a profit. | Think about it: if loans will be profitable and that the companies can cover any losses, then why are we even buying these loans? That’s a sound market environment! |
| Financial firms will repay the government for any losses. |
Only one thing is certain about this bailout: the taxpayers will be screwed.
The economy may have to take a bitter pill. Don’t let the government screw it up worse!
Did you catch “This American Life” on NPR this weekend? It offered an interesting discussion of the current financial situation and how the mortgage crisis is just one part of a bigger mess.
I didn’t hear this week’s. Thanks for mentioning it; I’ll have to pick up the podcast.